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Hi,
I started renting my flat from 1st September 2017. Am I understanding it correctly that I have to register for self assessment before 30th September 2018?

Another question is whether I need to register at all if I charge £530 for rent out of which £520 is going into paying off the mortgage on that property?

Is there anything else I need to do as far as HMRC is concerned? Do I need to pay any additional insurance contributions or other tax? I am in full time employment and I'm renting based on consent to let (i.e. my mortgage is not buy to let) if that makes any difference.

Yes you should register. Do it now so that you can start using the HMRC online help provided to understand your obligations well before you need to submit. There's lots you need to be aware of that I'm not sure you are.

Hi,
I started renting my flat from 1st September 2017. Am I understanding it correctly that I have to register for self assessment before 30th September 2018?Yes of course. Why would you not?

Another question is whether I need to register at all if I charge £530 for rent out of which £520 is going into paying off the mortgage on that property?Your total mortgage payment is not a taxable expense. Only the interest is.

Is there anything else I need to do as far as HMRC is concerned? Learn what are taxable expenses.

Do I need to pay any additional insurance contributions or other tax?No.

(hmmm.... CGT? CT? ) I am in full time employment and I'm renting based on consent to let (i.e. my mortgage is not buy to let) if that makes any difference.

That is an arrangement between you and your mortgage lender. Irrelevant to HMRC.

What did your business plan show when you prepared it before deciding to let your property?

lots of info here, including links to relevant websites for more info:

** Tenancies in Eng/Wales: Guides for landlords and tenantsThis thread is intended to provide information to both landlords and tenants relating to Assured Shorthold Tenancies (ASTs) in England and Wales.

Get registered with HMRC and sign up to their email alerts service - there's loads of online seminars, videos and guides to help you fill in your return, or pay an accountant to do it. I have two BTL with my OH and we do our own.
Log everything you spend in relation to the property as you can claim against any tax bill such as insurance, agent fees, maintenance. Morgage interest is the one thing that has changed - have a read of this - http://www.telegraph.co.uk/investing/buy-to-let/new-buy-to-let-tax-works-andhow-beat/

Not quite - renting out a property is a separate class of income from self-employment. Renting out a property does not make you self employed. There are differences in how they are treated, for example the self-employed have to pay NI but you do not pay NI on property income in most circumstances.

Losses from property are also treated differently, in that they can only be carried forward and offset against profits from property in future tax years or against profits from other properties in the same tax year. You cannot reduce your tax payable from other sources of income.

ok, thanks for all the replies, I do appreciate your help. yes, I was reckless when setting the rent as I didn't consider tax implications. So, if I lose money in this tenancy period then be it but I want to learn from my mistakes and know how much to charge next tenants.

I will register for self assessment and I'd like to know how much roughly I should set aside for tax.

So, between September 2017 - March 2018 I will get £3710 from rent and I will pay £3640 mortgage on that property. My Questions is, will I pay tax off £3710 or £70 (£3710 - £3640)?

Replies above are conflicting about insurance contributions - do I need to pay insurance contributions or not?

Also, if that makes any difference, I live in Scotland and I'm in full time employment where I'm on 40% tax bracket. How does it affect my HMRC obligations?

ok, thanks for all the replies, I do appreciate your help. yes, I was reckless when setting the rent as I didn't consider tax implications. So, if I lose money in this tenancy period then be it but I want to learn from my mistakes and know how much to charge next tenants.

You really didn't do any research before you did this did you? You cannot charge tenants however much you want. You can only charge them what your property will let for. If you charge more than your flat is worth on the rental market you won't get a tenant and it will remain vacant meaning that you will make an even bigger loss than you do now.

No one is going to pay more for your property if they can get one the same or similar for less.

From what you have said so far it looks as if your property is always going to make a loss as a rental so in order to stop this loss you only have one option and that is to sell it.

If that's a repayment mortgage you have, then I don't think you will be making any money every month after paying tax. You should not look to this as a bussiness producing a positive income every month. Rather you should look at is as some one contributing to pay off your mortgage rather you having to shoulder the full burden.
If you are new to this you may want to go for a fully managed service from a letting agent. They may take 10% of you rent but that is tax deductible so effectively 6% in your case.

For those of us in Scotland who are higher and additional rate tax payers we will be caught in a !!!! sandwich of the Tories in power at Westminster and the SNP in Holyrood. Austerity cuts from one party and higher taxes from the other.

I digress. OP, are you aware that the next tenants you get in with have one of the new Private Rental Tenancies which come into force tomorrow?

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